Foundry Daily News

19. February 2017

PGO SA has acquired the outstanding shares of Kopex Foundry Sp. Z o.o., an acquisition which is part of the Kopex Group’s restructuring plan. This transaction has created Poland’s largest industrial group in the production of castings and forgings

PGO SA has operated in the industrial market in its current structure for over 10 years. Several of its subsidiaries have been in business for decades, and the Group can trace its origins to the Glinik Forge, founded in 1883. The production capability of the Group encompasses its subsidiary firms: the Śrem Cast Iron Foundry, Pioma Foundry, and Glinik Forge.

The Group’s development strategy is carefully planned and consistently executed, and has been enhanced through internal investments as well as strategic acquisitions, seizing on market opportunities as they arise. The recent Kopex transaction, will provide the PGO Group with expanded access to new markets and additional production capacity. Additionally, it will provide increased efficiency opportunities by exploiting synergies in a number of key areas.

“A skillful and consistent approach to our strategy has allowed the PGO Group to develop dynamically. We make every effort to ensure that PGO is seen by our customers as a reliable and attractive partner, and seen by our investors as a sound organization with a clear vision on future development and one that can guarantee a satisfactory return on invested capital,” said Dariusz Ginalski, President of the Management Board of PGO SA. “We believe that we meet the expectations of our business partners, who seek credible industrial partnerships that offer a stable economic and financial position. Last year, we stated that the funds raised from our bond issue would be used for internal investments and potential acquisitions. Our purchase of Kopex Foundry is being funded from these funds raised last year,” he added.

Kopex Foundry Sp. o.o. is a manufacturer of steel and iron casting, used in the production of construction machinery, elevators and transport equipment. The firm’s products can be found in machines in the mining, metallurgy, cement, energy, maritime and agricultural sectors.

In December of last year, TDJ, the majority investor in PGO Group, become a majority shareholder of the Kopex Group. As an active investor, TDJ is focused on the rapid and efficient implementation of the Kopex debt restructuring plan.

“We have been very familiar with the Kopex Foundry. We crossed paths with them several times over the years, sometimes competing, other times collaborating. Having the potential to acquire them, was a natural decision for us,” emphasised Dariusz Ginalski. “I am convinced that the combination of our respective potential, markets and technical capabilities as well as synergies will provide greater flexibility and a powerful pathway to meet growing market demands and consequently, to expand and increase the attractiveness of our product offering,” he continued.

The PGO Group, which includes Pioma Foundry Sp. o.o, Śrem Cast Iron Foundry S.A. and Glinik Forge Sp. o.o, and from today Kopex Foundry Sp. o.o. has become Poland’s largest industrial group specialising in the production of castings and forgings. Through its ability to achieve the highest industry standards and global requirements, the Group has been able to successfully operate in both domestic and international markets. PGO is part of TDJ, a private Polish investment firm operating in various sectors of the economy.